EFTA’s US$ 100 Billion Windfall for India’s Growth - News

Under a forthcoming free trade agreement (FTA), the European Free Trade Association (EFTA) has committed to investing a substantial US$ 100 billion in India over the next 15 years. 

India’s heavy dependence on Chinese imports, especially in critical sectors like chemicals and pharmaceuticals, has long raised concerns for strategic and economic reasons. This agreement aims to diversify India’s imports in key sectors, like pharmaceuticals, food processing, engineering, and chemicals, thus reducing dependence on Chinese imports. 

The investment is expected to primarily come from provident funds (PF) in EFTA nations, including Iceland, Liechtenstein, Norway, and Switzerland. This move not only signifies a substantial economic commitment but also underscores India’s appeal as a growing consumer market and a hub for joint ventures in various industries. 

Additionally, the FTA anticipates lead to more job creation, with around 10 million jobs projected to be generated. This deal is expected to significantly impact India’s trade dynamics, especially in sectors like medical devices, where higher standards from EFTA countries may offer a competitive advantage over Chinese products subject to high tariffs.